KRS 355.2A-528: Lessor's damages for nonacceptance, failure to pay repudiation, or

other default.

(1) Except as otherwise provided with respect to damages liquidated in the lease

agreement (KRS 355.2A-504) or otherwise determined pursuant to agreement of the

parties (KRS 355.1-302 and 355.2A-503), if a lessor elects to retain the goods or a

lessor elects to dispose of the goods and the disposition is by lease agreement that

for any reason does not qualify for treatment under KRS 355.2A -527(2), or is by

sale or otherwise, the lessor may recover from the lessee as damages for a default of

the type described in KRS 355.2A -523(1) or 355.2A -523(3)(a), or, if agreed, for

other default by the lessee:

(a) Accrued and unpaid rent as of the date of default if the lessee has n ever taken

possession of the goods, or, if the lessee has taken possession of the goods, as

of the date the lessor repossesses the goods or an earlier date on which the

lessee makes a tender of the goods to the lessor;

(b) The present value as of the date determined under clause (a) of the total rent

for the then remaining lease term of the original lease agreement minus the

present value as of the same date of the market rent at the place where the

goods are located computed for the same lease term; and

(c) Any incidental damages allowed under KRS 355.2A-530, less expenses saved

in consequence of the lessee's default.

(2) If the measure of damages provided in subsection (1) of this section is inadequate to

put a lessor in as good a position as performance w ould have, the measure of

damages is the present value of the profit, including reasonable overhead, the lessor

would have made from full performance by the lessee, together with any incidental

damages allowed under KRS 355.2A -530, due allowance for costs reasonably

incurred and due credit for payments or proceeds of disposition.